QUBT Stock Lags YTD but Photonic Foundry May Be a Long-Term Catalyst

Over the past few quarters, Quantum Computing Inc. QUBT has steadily advanced the commercialization of its thin-film lithium niobate (TFLN) photonic chip foundry, emerging as its most important growth driver.

In 2024, the company completed its Tempe, AZ facility and secured multiple preorders, including five purchase orders for its chips. At the same time, QUBT emphasized that its foundry strategy addresses not only its own next-generation quantum systems but also broader opportunities in datacom and telecom markets. This early demand signaled strong market validation even before the facility began its production.

In early 2025, management highlighted the foundry as central to its commercialization strategy, noting QUBT’s position as one of the few U.S. providers of TFLN photonic chips. This marked a shift from building the facility to being ready to turn preorders into revenues.

In the last-reported second-quarter 2025, QUBT delivered on that promise by initiating its first customer shipments, marking a significant transition from government research contracts, such as its ongoing NASA collaborations, toward scalable, repeatable product revenues. Management highlighted the foundry’s role as a key driver of growth, enabling the company to diversify its revenue base and extend its reach beyond quantum into larger adjacent markets.

Taken together, the last three sequential quarters illustrate a clear ramp in the foundry business, from preorder capture to production readiness to actual deliveries, establishing a foundation for sustainable commercialization and long-term expansion.

QUBT's Peers in Photonic Integration and Foundry Services

Lumentum Holdings LITE: The company develops photonic products for telecom, datacom and 3D sensing applications. Lumentum recently advanced in the field of photonic solutions. In March 2025, the company was named an NVIDIA NVDA silicon photonics ecosystem partner, leveraging its high-power, energy-efficient lasers to support NVIDIA’s Spectrum-X networking switches for hyperscale AI data centers.

Coherent Corp. COHR: The company is executing a broad strategy that spans AI data centers, industrial lasers and precision manufacturing. At its 2025 Analyst & Investor Day, COHR set targets of 22% revenue growth and of nearly tripling EPS, driven by demand from AI networking markets.

QUBT's Price Performance

Year to date, Quantum Computing has lost 10.8% against the industry's 18.5% growth and the sector’s 14.6% rise. The S&P 500 index, meanwhile, has improved 11% during the said period.

Year-to-Date Share Price Comparison: QUBT

Average Target Price Shows Near-term Upside

Based on short-term price targets, Quantum Computing is currently trading 22.9% below its average Zacks price target.

QUBT currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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